ANNUAL REPORT 2016 - daks2k3a4ib2z.cloudfront.net · 6 67891802034751 79601 1171 09019999903309575899 NATURE AND LOCATION OF THE ACTIVITIES The DSD Group, of which Stavangerske Dampskibsselskab

ANNUAL REPORT 2016

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BOARD REPORT

CONSOLIDATED FINANCIAL STATEMENTS 2016

CASH FLOW STATEMENT

NOTES

AUDITOR´S REPORT

CONTENT

THE BOARD’S ANNUAL REPORT

6 DET STAVANGERSKE DAMPSKIBSSELSKAB AS ANNUAL REPORT 2016

NATURE AND LOCATION OF THE ACTIVITIES

The DSD Group, of which Stavangerske Dampskibsselskab AS (DSD) is the parent company, is a Norwegian company with main office in Stavanger. Since its foundation in 1855 the company has primarily been engaged in transportation activities.

DSD’s vision is to be owner of the leading and most innovative transportation companies in the Nordic region, also holding considerable, active positions in other strategic growth industries.

Activities are concentrated around four areas of operation: Ferry and express boat service (Norled Group), Bus transportation (Tide Group), International shipping (DSD Shipping AS), and Logistics and conveyance of goods (Nor Lines Group)

TRENDS AND DIRECTION IN 2016

For the DSD Group 2016 was characterized by structural processes.

As a result of the interest in Tide ASA, a process was initiated where the DSD Group received a number of bids for the company. Owing to Tide’s attractive position, DSD chose to bid for the remaining shares, included the 27.7 % owned by parent company Folke Hermansen AS. This resulted in DSD making a mandatory bid for all Tide shares. In the 1st quarter 2017 DSD carried out a compulsory redemption of the few, remaining minority shareholders, and now controls 100 % of Tide ASA. The company has been delisted.

The DSD Group wished to obtain a structural solution for company Nor Lines, which had seen a number of demanding years and stagnation in organic growth. In 2016 a sales process was initiated, which ended in a sales agreement being signed with company Eimskip Ehf. The agreement was entered subject to the approval of the Norwegian Competition Authority. The authority notified an intervention 21 February 2017 and ultimately issued a final ban against the transaction on 3 April 2017.

Following the authority’s decision, DSD has made a

directed process toward a number of players and is expecting to conclude a new agreement. Owing to Nor Lines’ magnitude an agreement has to be reported to the Norwegian Competition Authority.

DSD Group posted earnings of NOK 3,477 million in 2016 (versus NOK 3,542 million in 2015). Earnings are distributed between the group’s areas of operation, where ferry and express boat operation (Norled Group) carries 61 %, logistics and conveyance of goods (Nor Lines Group) 30 %, and international shipping 9 %.

Bus transportation (Tide Group) posted earnings for the year at NOK 2,405 million. Tide is consolidated into the balance sheet per 31.12.16, but since DSD did not assume the control until December 2016, Tide is recognized as an affiliated company in the income statement for all of 2016.

2016 has seen a significant improvement in Norled, with the company delivering its best result to date. The improvement is mainly explained by changes to the contract portfolio.

In terms of operation Tide is delivering somewhat better results in 2016 compared to 2015. The Norwegian activities have seen a positive development, while results of the Danish activities, plus workshop operations, have not been satisfactory.

The market within international shipping has been in decline, which has impacted negatively on rates. Parts of the fleet are operating on long-term TC-contracts, which have lessened the negative effect of market developments. A weakening of the USD against NOK in 2016 gave a NOK 73 million unrealized profit on exchange for DSD Shipping, compared to an unrealized loss at NOK 152 million in 2015.

Equal to 2015, Nor Lines experienced a demanding year involving considerable off-hire resulting from technical challenges with our new ships and a new route structure. The results for 2016 are not satisfactory, but nevertheless show a significant operational improvement compared with 2015.

ANNUAL REPORT AND ACCOUNTS 2016

7DET STAVANGERSKE DAMPSKIBSSELSKAB AS ANNUAL REPORT 2016


FERRY AND EXPRESS BOAT OPERATION: NORLED GROUP

Norled is one of the country’s largest companies within maritime passenger and automobile transport. The company operates 80 vessels, 53 ferries, and 27 express boats operating a number of ferries and express boat services from the Oslofjord to Troms.

In 2016, Norled transported approx. 9 million private car units and 18 million passengers through various contracts with national and local government. These contracts constitute a contractual reserve of approx. NOK 13.5 billion including options.

With main office in Stavanger, and regional offices in Bergen, Ålesund and Oslo, Norled employs 1005 co-workers. The number of man-years is 961. The group has taken in 42 apprentices and 15 cadets in its fleet.

EBITDA for the year ended at NOK 387 million, up

from 367 in 2015. The company posted in 2016 a pre-tax profit of NOK 122 million, compared with NOK 101 million in 2015. In 2015 NOK 63 million was posted as earnings, in consequence of the ruling in a trial relating to contractual income and discounts. Adjusted for this effect the profit increase in 2016 was NOK 84 million.

The increase is mainly due to improvements in the contract portfolio, orders to existing contracts, and lower bunker expenses.

Norled’s equity is NOK 819 million (28 %). The company’s cash on hand totaled NOK 208 million end 2016.

AREAS OF OPERATION



NOR LINES

LOGISTICS AND GODSTRANSPORT

Nor Lines, with main office in Stavanger, is a transportation and logistics company which operates in regular trade along the Norwegian coast, the North Sea, and Baltic Sea.

The company operates an extensive, national transportation system, forwarding activities, and operation of terminals with associated activities.

The company has 14 branch offices located along the coast and operated at year’s end a fleet of 7 general cargo ships, refrigerator cargo ships, RoRo, and side port ships in its regular lines, of which 3 ships are self-owned. Nor Lines leases and operates the entire freight capacity of Hurtigruten’s 11 ships.

Nor Lines end 2016 had a staff of 187 working 185 man-years. Additionally Nor Lines employed 72 seamen working onboard its ships.

As a result of weak results and challenges relating to obtaining organic growth, DSD has through the year been seeking to obtain a structural solution for the company. In November 2016 an agreement was entered to sell the company to Eimskip. The transaction was halted by the Norwegian Competition Authority. DSD

is working to find a new solution for the company, and is expecting to enter a new agreement. Owing to Nor Lines’ magnitude, an agreement has to be reported to the Norwegian Competition Authority.

Nor Lines’ earnings for 2016 were NOK 1,060 million, which is on a par with 2015. EBITDA showed a NOK 6 million reduction compared to 2015. EBITDA for 2016 ended at approx. NOK -27 million.

The company posted a pre-tax loss of approx. NOK -94 million for 2016 compared with NOK -51 million in 2015. The 2016 result is marked by write-downs reflecting the agreement on sale of Silver Sea/Samskip. The underlying operation shows an improved EBITDA of NOK 21 million, from NOK -74 million in 2015 to NOK -54 million in 2016.

2016 also saw technical challenges relating to newbuildings and the introduction of a new route structure. Tougher competition and margin pressure also affected the company negatively. The company implemented a number of cost reducing measures in 2016, including major organizational changes in the first six months of 2016.



INTERNATIONAL SHIPPING

DSD Shipping is responsible for the commercial operation of DSD’s international fleet of ships. The fleet in 2016 consisted of 4 crude oil tankers and 3 product tankers of various sizes. The company chose to reduce exposure in the spot market, selling product tanker M/T Stavanger Eagle in 2016. DSD Shipping was in 2016 responsible for the technical operation of Nor Lines’ three self-owned ships.

DSD Shipping employed a staff of 14 employees working 13 man-years in 2016.

In spite of a negative market development, the shipping segment posted a pre-tax profit of NOK 89 million in 2016, compared to NOK -58 million in 2015. As a

DSD SHIPPING

consequence of a decrease in the value of ships, write-downs of NOK 40 million were made.

The change in result from 2015 to 2016 is primarily a result of an unrealized gain on foreign exchange loans, write-downs reflecting a fall in the value of the fleet in 2016, plus extraordinary costs in 2015 relating to the Blossom case.

Adjusted for agio and write-downs, the segment shows a profit of NOK 52 million, which is a NOK 30 million reduction to 2015.



BUS TRANSPORT

Tide, with main office in Bergen, is one of the major bus companies in Norway and Denmark. Starting in 2016, DSD has by early 2017 taken over all shares in Tide, and now owns 100 % of company shares.

Core activity of the group is bus transport for public and private customers. In terms of turnover, the largest activity was operation on contract for the county administration. The Norwegian part of the company also operates an express and airport bus service, as well as tour buses. Additionally, the company is engaged in the tourist segment, organizing and delivering discovery tours in Norway and Europe.

End 2016, Tide employed a staff of 2,946, with a man-labour year of 2,751. The fleet of buses counted 1,568 buses.

End 2015, Tide completed a major Danish contract, and

started on two new major contracts in Denmark in the second part of 2016. The increase in turnover in Norway is due to a growth in existing contracts and increased activity within commercial services.

Tide posted in 2016 a pre-tax profit of NOK 2 million, compared to NOK 14 million in 2015. Adjusted for gains on disposal of assets, profits improved by NOK 8 million in 2016, which is explained by a positive trend in Norwegian activities. Results of the Danish activities and workshop operations in Norway were not satisfactory.

Tide won two major contracts in 2016, and end 2016 had an order reserve of approx. NOK 12.4 billion including options.

Tide’s equity is NOK 368 million (24 %). The company’s cash on hand constituted NOK 181 million end 2016.

TIDE



FINANCIAL RISKREPORT ON THE ANNUAL ACCOUNTS

OVERALL OBJECTIVES AND STRATEGY

The group is exposed to financial risk through its areas of operation. The risk is primarily connected to foreign currency, interest rates, oil price, and credit risk. The objective is to reduce financial risk as far as possible. It is monitored on a continuous basis and financial derivates are employed to reduce such exposure.

Currency risk: The group is exposed to exchange rate fluctuations, particularly USD, since parts of the company’s earnings are paid in foreign currency. Currency risk is sought neutralized by using activities with earnings and debt servicing in foreign currency as collateral in the same currency.

A major part of interest exposure has been secured through compensation clauses in communication contracts. The group is exposed to the price of oil and bunker consumption. Within ferry and express boat operation, plus bus transportation, regulation of contracts has lately been significantly improved, and risk significantly reduced.

Credit risk is considered moderate. Large parts of the group’s turnover derive from contracts with national and local government. Credit risk is therefore considered as low. Within international shipping, counterparty risk is somewhat higher. Overall, the group has a moderate credit risk.

Liquidity risk in the group is considered satisfactory. Cash flow is servicing debt with a comfortable margin

WORKING ENVIRONMENT AND PERSONNEL

DSD Group at year’s end had a staff of approx. 4,200 employees (including Tide). DSD Group wishes to be an attractive workplace with a healthy working environment. We therefore attach a great importance to health, environment and safety, and working relations are good between employees, employee representatives, and management. The sickness absence rate for the group in 2016 (excluding Tide) was 6.6 %, compared to 5.6 % in 2015.

CONTINUED OPERATIONS

In compliance with the Accounting Act, § 3-3a, it is confirmed that an assumption of continued operations is present.

INCOME STATEMENT

2016 was the 161st operating year of the DSD Group. The group posted in 2016 earnings of NOK 3,477 million compared to NOK 3,542 million in 2015. EBITDA constituted NOK 543 million compared to NOK 561 million in 2015, which represents a NOK 18 million reduction.

Pre-tax profit ended at NOK 72 million, compared to a pre-tax loss at NOK -24 million in 2015. The result was positively affected by a gain on foreign currency loan (NOK 73 million). Norled and DSD Shipping show considerable improvement compared to 2015. Tide delivers on a par with the result of 2015, while Nor Lines delivers poorer results in 2016 compared with 2015.

EQUITY

Aggregate capital at year’s end was NOK 6,591 million, compared with NOK 5,335 million the year before. Equity end 2016 was NOK 1,727 million, which represents an equity ratio of 26 %, compared to 28 % the year before.

The change is primarily due to a balance-sheet increase resulting from Tide being consolidated into the accounts per 31.12.16.

CASH FLOW, LIQUIDITY AND DEBT

Net cash flow for the year war positive, at NOK 283 million (negative at NOK -42 million in 2015).

Payment of debt constituted NOK 426 million and raising of new debt NOK 128 million.

Liquid assets as of 31.12.16 were NOK 529 million.

The income statement, balance sheet and cash flow provide a true picture of the company’s operations, position, and liquidity.


EQUAL OPPORTUNITIES

The group has as its goal to be a workplace where there is full equality between women and men. The group has incorporated provisions that aim at preventing differential treatment with basis in gender in matters such as salary, advancement, and recruitment.

Transportation and maritime activities are traditionally male dominated lines of industry. Of the group’s employees 576 are women (including Tide), a proportion of 14 %. In the parent company’s board of directors, the female proportion is 1/3

DISCRIMINATION

The various subsidiaries have established procedures on how to notify unacceptable conditions, such as bullying and harassment, and how to handle conflicts. The guidelines have been adopted by the working environment committees of the respective companies and disseminated in the organization. The guidelines are also available in the companies’ personnel manuals. All group co-workers have equal working conditions, regardless of gender, nationality and ethnic origin.

ENVIRONMENTAL REPORTING

The group’s activities are by nature impacting on the exterior environment. The company attaches importance to being in the forefront when it comes to meeting regulatory requirements aimed at reducing pollution of the environment. In newbuildings, eco-friendly technology is installed to cut emissions as far as possible. The group is taking active efforts to cut the use of diesel within ferry and express boat operation, bus transportation, and conveyance of goods, and an increasing share of the group’s vessels is now using natural gas.

The group has in recent years introduced innovative measures in several areas of operation, focusing on energy efficiency and the environment. Work is continuously ongoing to reduce the environmental impact of existing material. Fuel consumption is gradually being reduced through awareness-raising, technological innovation, and thorough planning

of routes. The group is an active partner in the development of new vessel concepts, energy efficient engines and propeller systems, and the use of alternative fuels such as biofuel, natural gas, and battery technology.

The DSD Group wishes to be in the forefront of development and an initiator and innovator within eco-friendly transport. Norled currently has five ferries operating on natural gas, and the world’s first battery operated car ferry, the Ampere.

Nor Lines operates two LNG-operated cargo ships. This represents a renewal of the coast fleet and gives environmental gains by replacing older tonnage. Tide is the Norwegian company operating the highest number of gas-operated buses, around 200. As the only operator, Tide operates 6 trolley articulated buses which are climate neutral and operate on clean power. Tide has committed itself to using biofuel as fuel on its buses in Trondheim and Bergen as soon as this becomes available.

The group’s ships, those operating internationally as well as nationally, are certified according to the ”International Management Code for Safe Operation of Ships and Pollution Prevention”, (ISM-code). Tankers operating internationally are certified according to NS-ISO 9001:2008 and NS-ISO 14001:2004 through their respective operational organizations. Preventive measures have been adopted to assure documentation of the company’s established procedures.

In Tide and Norled all departments are certified according to environmental standard NS-ISO 14001:2004.

The group did not post any costs relating to research and development in 2016.


OWNERSHIP, ETC.

DSD is a wholly owned subsidiary of Folke Hermansen AS. Yuhong Jin Hermansen, through her wholly owned companies, is the major shareholder of Folke Hermansen AS.

BOARD OF DIRECTORS AND MANAGEMENT

There were no changes to the board of directors or management in 2016.

FUTURE PROSPECTS

The company’s goal is to create long-term return on invested capital through healthy corporate governance.

Group profitability in recent years has not been satisfactory. It is therefore gratifying to note that trends have turned in a positive direction, with the group delivering a profit in 2016. The largest subsidiaries of the group enjoy a strong technical position and market positions within their segments.

Within transportation, Norled and Tide both strengthened their positions as leading players, and are now reaping the results of a focus on improved operations and boosted earnings as a result of more correct pricing of contracts and risk. The buyout of the minority shareholders in Tide goes to prove that the DSD Group firmly believes in this segment.

Within international shipping we have seen an impaired market, leading to lower profits and ship values. This has negatively affected the two ships operating in the spot market. Other vessels operate on longer TC-contracts, which helps to lessen the impact of the market development. At the same time, the weak market represents an opportunity for obtaining growth at attractive levels. The board of directors takes a positive view of obtaining growth in the segment, and expects a process of fleet expansion and renewal to start in during 2017.

Nor Lines has in recent years undergone an extensive restructuring process, with changes being made to

(NOK 1,000)

Other equity 51,229

Total allocations 51,229

the organization, route structure, and fleet. The expected transaction will give the company economies of scale and is a good solution for the company.

A focus on competence training, cost control and risk management is expected to enhance the group’s profitability going forward.

The board of directors expects a slightly weaker result for Norled in 2017 as a result of contract portfolio changes, but expects to see an improvement of results in 2018 and 2019 for the same reason.

We expect weaker results in 2017 for the shipping activity. However, it is assumed that the market balance will be restored toward the end of 2018.

For Tide we expect to see improved results as a result of changes to the contract portfolio, including start-up of new contracts at acceptable rates of return.

The board of directors would like to thank all employees, customers, and partners for their contribution and cooperation in 2016.

Annual profit and allocations

The board of directors proposes that the profit of Det Stavangerske Dampskibsselskab AS be allocated as follows:


Stavanger, June 22, 2017The board of directors of Det Stavangerske Dampskibsselskab AS:

Yuhong Hermansen Chairman of the board

Steinar Olsen Member of the board

Jan Erik Horgen Member of the board

Bjørn Anders Dahle Member of the board

Ingvald Løyning CEO

Svein Gjedrem Vice Chairman

Marit Salte Member of the board

ANNUAL REPORT AND ACCOUNTS 2016


PARENT01.01 - 31.12 2016 2015 NOTE

GROUP01.01 - 31.12

2016 2015

7,943 4,864 Operating income 16,18,22 3,477,085 3,542,457

16,278 11,238 Wage cost 3,11 1,135,777 1,107,717

817 570 Depreciations on fixed assets 12 294,703 288,470

0 0 Write-downs 12 59,982 0

16,339 10,486 Other operating costs 3,12,20,22 1,798,042 1,873,290

-25,491 -17,430 Operating profit 188,581 272,980

84,185 -21,665 Result of investments in subsidiaries 2,22 0 0

-23,217 -7,521 Result of investments in associated companies 2,21 -22,731 -7,359

60,968 -29,186 Result of investments -22,731 -7,359

15,781 17,564 Financial income 9 6,020 5,664

-4,529 13,279 Financial costs 9 -172,900 -142,582

0 0 Unrealized gain/loss on exchange 9 72,849 -152,288

11,252 4,285 Net financial items -94,031 -289,207

46,729 -42,331 Ordinary result before taxes 71,819 -23,586

4,500 11,747 Tax on ordinary result 14 -20,492 -10,473

51,229 -30,584 Annual result before minority interests 51,327 -34,059

0 0 Minority interests 15 730 -3,286

51,229 -30,584 Annual result after minority interests 50,597 -30,773

Allocation of annual result

0 50,000 Allocated group contribution

0 0 Revaluation reserve

51,229 -80,584 Other equity

51,229 -30,584 Total allocated

INCOME STATEMENT (Amounts in NOK 1,000)


INCOME STATEMENT BALANCE SHEET (Amounts in NOK 1,000)

PARENT31.12.2016 31.12.2015 NOTE

GROUP31.12.2016 31.12.2015

ASSETS

Fixed assets

Intangible assets

0 0 Other intangible assets 12 4,000 4,000

29,946 25,461 Deferred tax advantage 14 0 0

0 0 Goodwill 12 259,218 0

29,946 25,461 Total intangible assets 263,218 4,000

Tangible fixed assets

0 0 Sites and buildings 6,12 64,379 1,596

2,505 1,302Means of transport and other movable property 6,12 1,002,933 19,750

0 0 Ships, rigs, aircraft and similar 6,12 3,969,082 4,347,331

0 0 Periodic maintenance 6,12 16,385 25,123

0 0 Newbuilding contracts for ships 12 38,187 55,673

2,505 1,302 Total tangible fixed assets 5,090,966 4,559,473

Financial fixed assets

1,775,675 1,292,765 Investments in subsidiaries 2 0 0

18,649 221,543 Investments in associated companies 2,6,21 18,649 221,543

4,147 3,610 Loans to companies in the group 4,7,17 0 0

785 813 Other receivables 4,11 10,206 7,773

2,312 2,264 Investments in stock and shares 8 4,390 4,342

1,801,568 1,520,995 Total financial fixed assets 33,245 233,658

1,834,019 1,547,758 Total fixed assets 5,387,429 4,687,131

Current assets

0 0 Commodities 13 47,025 26,820

Receivables

116 143 Account receivables 6 416,949 237,504

52,163 58,269 Group/parent company receivables 7,17 0 33,389

4,666 444 Other receivables 210,818 104,590

56,945 58,856 Total receivables 627,767 375,483

Investments

43 43 Market based financial instruments 8 43 43

43 43 Total investments 43 43

654 37,048 Bank deposits, cash and similar 5,6 529,115 245,644

57,642 95,947 Total current assets 1,203,950 647,990

1,891,661 1,643,705 TOTAL ASSETS 6,591,379 5,335,121


BALANCE SHEET (Amounts in NOK 1 000)

PARENT31.12.2016 31.12.2015 NOTE

GROUP31.12.2016 31.12.2015

EQUITY AND LIABILITIES

Equity

Paid-up equity

573,736 573,736 Share capital 15 573,736 573,736

305,406 305,406 Share premium 15 305,406 305,406

879,142 879,142 Total paid-up equity 879,142 879,142

Retained earnings

0 0 Revaluation fund 0 0

631,085 579,480 Other equity 0 0

0 0 Group funds 778,062 594,096

0 0 Minority interests 69,703 1,272

631,085 579,480 Total retained earnings 15 847,765 595,368

1,510,227 1,458,621 Total equity 1,726,907 1,474,510

Liabilities

Provisions for liabilities

690 1,324 Pension commitments 11 25,953 33,197

0 0 Other liabilities 6,000 0

0 0 Deferred tax 14 104,122 84,347

690 1,324 Total provisions for liabilities 136,075 122,544

Long-term liabilities

128,175 100,000 Financial institutions 6, 10 3,434,297 3,051,226

128,175 100,000 Total long-term liabilities 3,434,297 3,051,226

Short-term liabilities

0 0 Financial institutions 5,6 68,532 31,020

3,270 515 Accounts payable 301,270 194,300

0 0 Tax payable 14 680 4,756

1,659 443 Duties payable 152,480 78,700

0 50,000 Group contribution 0 50,000

239,007 22,728 Debt to companies in the same group 7,17 178,125 0

8,633 10,020 Other short-term liabilities 593,013 328,066

252,569 83,760 Total short-term liabilities 1,294,100 686,842

381,434 185,084 Total liabilities 4,864,472 3,860,612

1,891,661 1,643,705 TOTAL EQUITY AND LIABILITIES 6,591,379 5,335,121


Yuhong Hermansen Chairman of the board

Steinar Olsen Member of the board

Jan Erik Horgen Member of the board

Bjørn Anders Dahle Member of the board

Ingvald Løyning CEO

Svein Gjedrem Vice Chairman

Marit Salte Member of the board

Stavanger, June 22, 2017The board of directors of Det Stavangerske Dampskibsselskab AS:


CASH FLOW STATEMENT (Amounts in NOK 1,000)

PARENT01.01 - 31.12

2016 2015 NOTE

GROUP01.01 - 31.12

2016 2015

Cash flow from operational activities

46,729 -42,331 Profit before tax 71,819 -23,586

817 570 Ordinary depreciation 12 294,703 288,470

0 0 Write-downs 12 59,982 0

0 -1,008 Loss/(profit) from sale of fixed assets 12,21 -12,140 -40,407

-84,185 21,665 Result of investments in subsidiaries 0 0

23,217 7,521 Result of investments in associated companies 2 22,731 7,359

-11,252 -4,285 Net financial items 94,031 289,207

0 0 Changes in inventories 13 7,589 -2,966

27 -79 Changes in accounts receivable -9,924 -28,074

2,755 -722 Changes in accounts payable -123 -21,360

-634 -4,898 Changes in pension liabilities 11 -26,835 -20,993

0 0 Tax 14 -4,756 -1,705

-4,351 3,067 Changes in other accrual items 28,575 -52,579

-26,877 -20,550 Net cash flow from operational activities 525,652 393,366

Cash flow from investment activities

0 5,147 Payments received from sale of fixed assets/shares 2,12 148,126 223,487

-7,068 -1,522 Payments made for purchases of fixed assets/shares 12 -75,277 -437,487

0 0 Net cash effect from group changes 2 180,573 0

-265,917 0 Payments received from sale of shares -265,917 0

13,005 16,374 Interest/other financial income received 9 5,942 5,664

0 9,500 Payments received from sale of shares 0 12,583

54,841 128,150 Dividend received 4,840 2,200

46 179 Group contribution received 0 0

0 340 Payments received from other investments 0 340

-205,093 158,168 Net cash flow from investment activities -1,713 -193,213


cont. cash flow statement

PARENT01.01 - 31.12

2016 2015 NOTE

GROUP01.01 - 31.12

2016 2015

Cash flow from financing activities

-4,385 -11,737 Paid interest 9 -126,455 -137,965

-8 1,191 Realized profit/loss on exchange 9 -14,915 10,372

128,175 0 Payments received from long-term borrowing 6,10 128,175 426,750

-100,000 -25,000 Repayment of long-term liabilities 6,10 -426,299 -538,704

0 58,394 Receipts/payments relating to intra-group loans/borrowing 0 0

221,794 -105,468 Net changes to short-term receivables/intra-group liabilities 7 211,514 -603

0 -19,764 Receipts/payments relating to overdraft facilities raised/repaid 37,512 -1,800

0 0 Payment of equity 0 0

-50,000 0 Payment of dividend/group contribution -50,000 0

195,576 -102,384 Net cash flow from financing activities -240,468 -241,950

-36,394 35,234 Net change to liquid capital throughout the year 283,471 -41,797

37,048 1,814 Liquid assets 01.01. 245,644 287,441

654 37,048 Liquid assets 31.12. 529,115 245,644

654 591 Undistributable reserves (deduction of tax) 1,320 1,231

Liquid assets consist of cash in hand and bank deposits.


NOTE 1 - ACCOUNTING PRINCIPLES

The annual and consolidated accounts consist of income statement, balance sheet, cash-flow statement, and notes, and are prepared in accordance with the Accounting Act (Norw. Accounting Act) and sound accounting practices applicable in Norway as of December 31. 2016. In order to make the annual and consolidated accounts easier to read, they have been edited in a summarized form. The necessary breakdown is given in the notes. The notes are thus an integral part of the annual account.

The annual and consolidated accounts are based on the fundamental principles of historical cost, comparability, continued operations, congruence, and caution. Transactions are posted in the account at the value of compensation on the date of transaction. Revenues are allocated to the operating result when they are acquired, and costs are compared with revenues. Hedging has been taken into account. The accounting principles are described in more detail below. When actual numbers are unavailable at the time when the accounts are prepared, sound accounting principles require that management provide the best possible estimate to be used in the income statement and balance sheet. Some discrepancy may occur between estimated and actual numbers.

CONSOLIDATION PRINCIPLES

Consolidated companies

The consolidated accounts comprise the companies where the parent company and the subsidiaries have controlling interest directly or indirectly. The consolidated accounts show the companies’ financial position, the result generated by operations of the year and cash-flows as an overall financial unit. Controlling interest is basically considered to be present when one party, directly or indirectly, owns more than 50% of voting share capital. Companies owned on a temporary basis are not consolidated. Uniform accounting principles have been applied for all companies that are part of the group. Newly acquired subsidiaries are included from the point when controlling interest is achieved, and disposed subsidiaries are included until date of disposal.

Elimination of internal transactions

All substantial transactions and inter-company balance have been eliminated.

Elimination of ownership interests in subsidiaries

Ownership interests in subsidiaries have been eliminated from the consolidated accounts according to the purchase accounting method. The difference between cost of ownership interests and book value of net assets at the time of acquisition is analyzed and attributed to the separate balance items according to estimated fair value. Any further excess price owing to expectations about future earnings is activated as goodwill and depreciated in the income statement in line with the underlying factors and anticipated economic lifetime.

Minority interests

Minority interests’ share of after-tax result and equity is shown as separate items in the income statement and balance sheet.

Treatment of associated companies

With associated companies are meant companies where the group has 20-50% ownership interest, where the investment is of long-term and strategic character, and where the group may exercise a considerable influence. Associated companies are incorporated according to the equity method. The group’s share of the result in an associated company is based on after-tax profit in the associated company, deducted any depreciations of excess values owing to the cost of ownership interests being higher than the acquired share of book equity. The income statement shows the share of the associated company’s result under result on investments. The balance sheet shows ownership interests in associated companies under capital assets.

For associated companies that are part of transactions between partnerships, the group’s share of the result is based on pre-tax result of the associated company. Tax cost on the share of result is shown together with the group’s other tax costs.


General principles

Assets/debt relating to the operating cycle and items becoming due for payment within one year after balance day are classified as current assets/short-term debt. Current assets /short-term debt are valued at the lowest/highest value of acquisition cost and fair value. Fair value is defined as assumed, future sales price reduced by anticipated sales costs. Other assets are classified as capital assets. Capital assets are valued at acquisition cost. Deteriorated capital assets are depreciated. If there is a non-temporary change in value, a write-down of the fixed asset is made.

Sound accounting practices have some exceptions from general valuation rules. These exceptions are commented on in the respective notes. The application of accounting principles and the presentation of transactions and other factors, emphasizes periodic realities, not only the legal form. Probable and quantifiable contingent losses are charged as expenses. The division into segments is based on the company’s internal control and reporting objectives, and on risk and earnings. Numbers for areas of operation are presented. Numbers are reconciled against the company’s income statement and balance sheet.

INTANGIBLE ASSETS AND TANGIBLE FIXED ASSETS

Intangible assets

Intangible assets expected to generate future earnings, such as goodwill of subsidiaries and patents, are activated. Depreciations are calculated linearly across the assets’ economic lifetime. Expenses relating to research and development are carried on a continuous basis.

Tangible fixed assets

Tangible fixed assets are stated in the balance sheet at acquisition cost, deducted accumulated depreciations and write-downs. If fair value of an operating equipment is lower than book value, and this is due to causes assumed to be transient, the operating equipment is written down to fair value. Expenses relating to periodic maintenance and repairs on production equipment are

accounted for on an accruals basis. Expenses relating to normal maintenance and repairs are charged to income on a continuous basis. Expenses involved in major replacement and renewals boosting the lifetime of operating equipment substantially, are activated. Interest relating to facilities under construction is activated as part of the cost. Operating equipment leased at terms that in essential transfer the periodic rights and obligations to Det Stavangerske Dampskibsselskab (financial leasing), is activated as operating equipment, and is included as a liability under interest-bearing debt at present value of the minimum lease. Operational leasing costs are charged as ordinary lease cost, and classified as ordinary operating costs.

Depreciations

Ordinary depreciations are calculated linearly across the economic lifetime of the operating equipment, with basis in historical cost. Corresponding principles are applied as basis for intangible assets. Depreciations are classified as ordinary operating costs. Leasing recognized in the balance sheet is depreciated according to plans, and the liability is reduced by paid lease after deduction of calculated interest costs.

FINANCIAL ASSETS

Treatment of subsidiaries/associated companies

Subsidiaries and associated companies are incorporated according to the equity method.

The company’s share of the result of subsidiaries is based on the subsidiary’s after-tax result deducted any depreciations of excess value owing to the cost of ownership interests being higher than the acquired share of book equity. The income statement shows the share of the subsidiary’s result on a separate line under investment result. The balance sheet shows ownership interests in subsidiaries as a financial asset. Corresponding principles are applied as basis for associated companies.

For subsidiaries and associated companies that are part of transactions between partnerships, the company’s share of the result is based on pre-tax result. Tax cost on the share of result is shown together with the group’s


other tax costs. The company accounts use the equity method with basis on owner/unit view.

FINANCIAL INVESTMENTS

Market based stock, bonds and other financial instruments are classified as current assets are valued at fair value in line with the Accounting Act, Section5-8. Other short-term investments are valued at the lowest value of fair value and acquisition cost.

Investments in stock and units classified as capital assets are valued at the lowest value of average acquisition cost and market value.

Financial instruments used to secure assets or obligations are valued together with the underlying object. Other financial instruments are stated at fair value in line with the Accounting Act, Section 5-8.

Inventory

Inventories of goods are valued at lowest value of cost with basis in the “first in - first out “principle and assumed sales price. Cost of purchased goods is acquisition cost.

Accounts receivable

Accounts receivable are stated at nominal value deducted anticipated losses.

Foreign currency

Monetary items in foreign currency are valued at the exchange rates applicable at the end of the year.

Pension obligations and pension cost

The company has established pension schemes which give employees entitlement to agreed, future pension benefits, called defined benefit schemes. Pension obligations are calculated with basis in linear contributions with basis in assumptions on the number of years of service, discount interest, future

return on pension funds, future regulation of wages, National Insurance pensions and benefits, and actuarial assumptions on mortality, voluntary retirement, etc. Pension funds are valued at fair value. Net pension obligation consists of gross pension obligation with deduction of fair value of pension funds. Net pension obligations are recognized in the balance sheet as long-term interest-free liabilities, while net pension funds are recognized as long-term, interest-free account-receivable if use of the overfunding is likely.

Changes to the obligation owing to changes in pension plans, are distributed over the estimated average, remaining period of contribution. Changes to the obligation and pensions funds due to changes and deviations from estimate assumptions (estimate changes), are distributed over the estimated average, remaining period of contribution.

Net pension cost, which is gross pension cost deducted estimated return on pension funds, is corrected for the distributed effect of changes to estimates and pension plans, classified as ordinary operating costs, and is presented together with wages and other payments.

The group and parent company apply NRS 6A for pension accounting.

DEFERRED TAX AND TAX COST

Deferred tax is calculated with basis on temporary differences between account values and tax values at the end of the accounting year. The calculation applies a normal, nominal tax rate. Positive and negative differences are assessed against each other within the same time interval. Deferred tax advantage arises if there are temporary differences giving rise to tax deductions in the future. Tax cost of the year consists of changes to deferred tax and deferred tax advantage, together with payable tax for the income year corrected for mistakes in the calculations of previous years.


Revenue recognition

The group’s revenues principally comprise the following elements:

Ticket sales

Ticket sales comprise revenues generated by transportation of passengers and cars. The bulk is cash sales. Individual travel is recognized when the travel is completed. Sale of ticket punches are recorded as the ticket punches are being used. Unused ticket punches are classified in the balance sheet under short-term liabilities as deferred income.

Contract revenues

Contract revenues are governmental grants to operate services subject to license and compensation for public transportation services in public sector contracts. Revenue recognition takes place in compliance with the government award for each period. The award is not necessary linear, and may for some individual contracts and routes represent a higher amount the lower the level of traffic revenues. Contract revenue claims are recognized in the balance sheet as accounts-receivable.

Grants compensating for costs or lack of revenues are posted the same year for which cost or lack of revenue is meant to compensate, and classified as cost reduction or operating revenue.

Charter party earnings

The group’s activities within international shipping mainly comprise ships and/or crews leasing. Revenues are posted to income in line with the delivery of the service being provided. Pre-payments from customers are classified under short-term debt, and earned, non-invoiced revenues as accounts receivable. In all essentials, revenues from international shipping are paid in foreign currency (USD).

Other revenues

Other revenue categories comprise revenues from newsstands sales on ferries and ships, as well as earnings from tourism. Revenues are mainly cash sales which are recorded in the same period that the sale is completed. Tourism revenues are generated through distribution links within the travel unit and mainly consist of credit sale through travel agencies. Revenues are recorded in the same period in which they are earned, i.e. when the trip is completed and/or the service provided. Parts of the revenue relate to credit sale to foreign operators.

Cash-flow statement

The cash-flow statement is prepared with basis in the indirect method. Cash and cash equivalents comprise cash, bank deposits and other short-term, liquid investments, which immediately and with insignificant exchange risk may be converted into known amounts of cash with due date shorter than three months from acquisition date.

Hedging

The group applies various financial derivatives as an instrument to secure future cash-flows. Accounting of hedging appears by keeping derivatives outside the balance sheet until the secured cash-flows are posted in the income statement. Information on the fair value of derivatives is provided in note 6.


NOTE 2 - OWNERSHIP INTERESTS IN ASSOCIATED COMPANIES AND SUBSIDIARIES (Amounts in NOK 1,000)

INVESTMENTS IN ASSOCIATED COMPANIES PARENT GROUP

Opening balance 01.01 221,543 221,543

Additions / disposals for the year -177,326 -177,326

Share of result for the year/ profit from sale of stock -23,217 -22,731

Receipts/payment/ changes in equity -2,351 -2,837

Closing balance 31.12 18,649 18,649

Investments in subsidiaries Morselskap

Opening balance 01.01 1,292,765

Additions / disposals for the year 447,632

Share of result for the year 84,185

Dividend/group contribution/transfers -50,046

Corrections of previous years 1,138

Closing balance 31.12 1,775,675

OWERNSHIP INTERESTS IN ASSOCIATED COMPANIES BUSINESS OFFICE PARENT GROUP

O. H. Meling Tankers KS Stavanger 30.0 % 30.0 %

KS Olympic Octopus Fosnavåg 20.0 % 20.0 %

Nordvåg Carrier AhS Nørresundby, Danmark 50.0 %

SUBSIDIARIES BUSINESS OFFICE OWNER AND VOTING SHARE

Tide A Bergen 89.4 %

Tide Buss AS Bergen 89.4 %

Turbuss Vest AS Bergen 89.4 %

Turbuss Vest Reiser AS Bergen 89.4 %

Turbuss Vest Skolen AS Bergen 89.4 %

Tide Bane AS Bergen 89.4 %

Kystbussen Bergen 89.4 %

Neste Blåne AS Bergen 89.4 %

Tide Verksted AS Bergen 89.4 %

Bergen Bilberging AS Bergen 89.4 %

Tide Verksted Møre AS Bergen 45.6 %

Tide Verksted Rogaland AS Bergen 89.4 %

Tide Buss Denmark A/S Odense, Danmark 89.4 %

Tide Reiser AS Bergen 89.4 %

Tide Eiendom Hordaland AS Bergen 89.4 %

Tide Eien Bergen 89.4 %

WDV 44 Bergen 89.5 %


cont. note 2 - Ownership interests in associated companies and subsidiaries

SUBSIDIARIES BUSINESS OFFICE OWNER AND VOTING SHARE

DSD Shipping AS Stavanger 100.0 %

Stavanger Blossom AS Stavanger 100.0 %

Stavangerske AS Stavanger 100.0 %

AS Eagle Stavanger Stavanger 100.0 %

AS Eagle Sydney Stavanger 100.0 %

Sandnæs Dampskibs-Aktieselskab Stavanger 100.0 %

AS Veritas-Ruten Stavanger 100.0 %

Stavangerske International AS Stavanger 100.0 %

DSD Ships 1 AS Stavanger 100.0 %

KS Stavanger Blossom Stavanger 92.6 %

Herfo AS Stavanger 100.0 %

Stavangerske International Rederi AS Stavanger 100.0 %

KS Eagle Stavanger Stavanger 100.0 %

KS Eagle Sydney Stavanger 100.0 %

Kullkaien AS Stavanger 100.0 %

Klasaskjæret AS Stavanger 100.0 %

Norled Holding AS Stavanger 100.0 %

Norled AS Stavanger 100.0 %

Flekkefjord Dampskipsselskap AS Stavanger 100.0 %

Lysefjord KS Stavanger 66.0 %

Lysefjorden Rutelag AS Stavanger 100.0 %

Norled Drift AS Stavanger 100.0 %

Stanor Management AS Stavanger 100.0 %

Nor Lines AS Stavanger 100.0 %

Nor Lines Rederi AS Stavanger 100.0 %

Nor Lines Kirkenes AS Kirkenes 66.5 %

Skipafelagi Nor Lines Torshavn Færøyene 100.0 %

Baltic Line AS Stavanger 100.0 %

A valuation of the value of investments in subsidiaries has been conducted. The valuation is based on bud-gets approved by the board and anticipations of future earnings. The estimation has not led to any requirement for depreciations, but is sensitive to changes in assump-tions. DSD in December 2016 acquired approx. 41% of the shares in TIDE ASA, thereby holding 89.5% of shares per 31.12.2016. Further shares have been ac-quired in 2017, and after having reached a 90 % owner-ship interest, a notification of compulsory redemption of the remaining shares was given. The DSD accounts were rendered subject to TIDE being an associated

company during all of 2016, and DSD’s accounts and the consolidated accounts were rendered subject to this assumption. TIDE in 2016 posted earnings of NOK 2.4 billion and a profit of NOK 1.8 million (corresponding figures for 2015 were earnings of NOK 2.4 billion and a profit of NOK 10.3 million). In the consolidated balance sheet per 31.12.16, TIDE is consolidated into DSD’s con-solidated accounts.The acquisition led to goodwill and added value totalling NOK 278 million. The allocation of added value is provisional, final allocation will take place in 2017.


NOTE 3 - WAGE COSTS / NUMBER OF EMPLOYEES / ALLOWANCES

WAGE COST, ETC.PARENT

2016 2015GROUP

2016 2015

Wage costs 12,452 12,156 865,667 860,701

National insurance contribution 2,104 1,409 123,980 119,000

Pension costs 1,481 -2,570 53,246 39,088

Other benefits 241 243 92,885 88,928

Wage costs 16,278 11,238 1,135,777 1,107,717

Average number of employees: 6 6 1 398 1 367

Parent company

Allowances (Amounts in NOK 1 000) CEO Board

Wages and fees 3,081,188 1,100,000

Bonus 2,493,752

AUDITOR PARENT GROUP

Auditor’s remuneration for 2016 consists of the following (in NOK 1,000):

Statutory audit (including technical preparation of accounts) 185 1,726

Other attestation services 0 87

Tax consultancy (including technical preparation of tax return) 0 0

Other services besides auditing 564 662

CEO has a result based bonus agreement. CEO and the company have signed a mutual 6-month termination agreement. CEO is under certain conditions entitled to one year’s severance payment.

Pension premiums 150,000

Other allowances 32,752

Total 5,757,692 1,100,000

(Amounts in NOK 1,000)


NOTE 4 - ACCOUNTS RECEIVABLE

NOTE 5 - DRAWING RIGHTS AND NON-DISTRIBUTABLE RESERVES

(Amounts in NOK 1,000)PARENT

31.12.2016 31.12.2015GROUP

31.12.2016 31.12.2015

Loans to companies in the same group 4,147 3,610 0 0

Pension funds 0 0 9,259 4,488

Other accounts receivable 785 813 947 3,285

Sum 4,932 4,423 10,206 7,773

PARENT31.12.2016 31.12.2015

GROUP31.12.2016 31.12.2015

Carrying debt secured by mortgage or similar

Mortgage loan 128,175 100,000 3,434,297 3,051,226

Bank overdraft 0 19,764 31,020 31,020

Total 128,175 100,000 3,502,829 3,082,246

NON-DISTRIBUTABLE RESERVES

Of parent company’s total bank depositsm, NOK 654,000 are tied to tax withholding.

Of the group’s total deposits, NOK 1.32 million are tied to tax withholding.

GROUP ACCOUNT AGREEMENT

DSD AS and a number of subsidiaries have entered a group account agreement without credit facility. The group has unused drawing rights of NOK 6 million per 31.12.16 (NOK 44 million per 31.12.15).

Of long-term mortgage debt NOK 781 million was raised in USD (USD 90.6 million). This debt is related to the group’s tankers operating in international shipping. Underlying currency within international shipping is USD, and the USD debt connected to justering these operations is regarded as security for future cash flows in USD. The USD debt is posted at balance sheet’s exchange rates per 31.12.16 as earnings to a limited

extent are secured through long-term contracts. Inter-est and currency derivatives with an unrealized value of NOK 26 million (for the group) have not been recog-nized as a result of hedge accounting.

VALUE OF ACCOUNTS RECEIVABLE WITH MATURITY LATER THAN ONE YEAR:

NOTE 6 - ASSETS PLEDGED AS SECURITY AND GUARANTEE LIABILITIES(Amounts in NOK 1,000)


cont. note 6 - Assets pledged as security and guarantee liabilities

CARRYING AMOUNT OF ASSETS PLACED AS COLLATERAL FOR SECURED DEBT:

PARENT31.12.2016 31.12.2015

GROUP31.12.2016 31.12.2015

Ships 0 0 3,969,082 4,347,331

Vehicles and other operating equipment 0 0 580,790 9,656

Short-term accounts receivable 0 0 456,045 234,845

Shares 446,632 183,911 0 183,911

PER 31.12.2016

PARENTCompany in same

group Associated company

GROUP

Parent company Associated company

Short-term accounts receivable 52,163 0 0 0

Long-term accounts receivable and loans 4,147 0 0 0

Short-term liabilities -239,007 0 -178,125 0

Long-term liabilities / loans 0 0 0 0

Sum -182,697 0 -178,125 0

PER 31.12.2015Company in same

group Associated company Parent company Associated company

Short-term accounts receivable 58,269 0 33,389 0

Long-term accounts receivable and loans 3,610 0 0 0

Short-term liabilities -22,782 0 0 0

Long-term liabilities / loans 0 0 0 0

Sum 39,097 0 33,389 0

Loan guarantees are guarantees for outstanding mortgage loan in underlying companies. Other guarantees include guarantees for the group’s tax deduction funds at a total of NOK 97 million.

NOTE 7 - INTERCOMPANY BALANCES, ETC.


Total 446,632 183,911 5,005,917 4,775,743

UNRECOGNIZED GUARANTEESPARENT

31.12.2016 31.12.2015GROUP

31.12.2016 31.12.2015

Loan guarantees 1,137,348 1,355,166 0 0

Not called in capital in limited partnerships 40,711 40,711 58,405 58,405

Other guarantees 75,000 75,000 181,900 131,300

Total unrecognized guarantees 1,253,059 1,470,877 240,305 189,705


NOTE 8 - SHARES AND OTHER FINANCIAL INSTRUMENTS


OWNERSHIP INTEREST PURCHASE COST CARRYING AMOUNT

Parentcompany

Fixed assets:

Minor investments < 10 % 9,206 2,312

Sum 9,206 2,312

Current assets:

Shares in trading portfolio 43 43

Sum 43 43

OWNERSHIP INTEREST PURCHASE COST CARRYING AMOUNT

Group

Fixed assets:

Other companies < 10 % 11,284 4,390

Sum 11,284 4,390

Current assets:

Shares in trading portfolio 43 43

Sum 43 43

PARENT COMPANY

2016 2015GROUP

2016 2015

Interest income from companies in the same group/parent company 631 2,723 470 1,389

Other interest income 0 279 2,790 2,865

Income from shares and units (dividends and sales proceedsd) 2,640 0 2,640 0

Other financial income 12,374 13,372 120 1,410

Interest cost on companies in the same group/par-ent company -1,253 -1,610 -392 0

Other interest cost -3,121 -10,125 -120,808 -133,319

Loss on shares and ownership interests 0 -1,542 0 -1,542

Other financial cost -11 -2 -5,333 -4,646

Realized profit on exchange -8 1,191 -46,367 -3,075

Unrealized profit on exchange 0 0 72,849 -152,288

Net financial items 11,252 4,285 -94,031 -289,207

Realized net gain and dividend from securities constitute NOK 2.6 million in 2016.

Realized net gain and dividend from securities constitute NOK 2.6 million in 2016.

NOTE 9 - COMBINED ITEMS IN INCOME STATEMENT

(Amounts in NOK 1,000)FINANCIAL INCOME AND COSTS


PARENT31.12.2016 31.12.2015

GROUP31.12.2016 31.12.2015

Mortgage loan 0 0 266,658 317,810

First year’s installment on long-term debt 0 0 519,259 392,274

Provided the current payment plan is observed the following liabilities will fall due for payment more than five years after end of the fiscal year:

NOTE 10 - LIABILITIES

LIABILITIES FALLING DUE MORE THAN FIVE YEARS AFTER END OF FISCAL YEAR:

MOR


NOTE 11 - PENSIONS(Amounts in NOK 1,000)

NET PENSION COST 2016 2015

Present value of the year’s pension accruals 0 987

Interest cost on pension commitments 68 309

Return on pension funds -35 -319

Accrued employer’s national insurance contribution 0 139

Recognized actuarial variance, commitment at cessation, etc. 601 -3,686

Net pension cost 634 -2,570

DSD AS decided in 2015 to discontinue the defined-benefit pension assurance scheme with effect from 30 November 2015. Until discontinuation of the defined-benefit scheme the company had the following pension scheme in place: Full old age pension from the age of 67, which constituted roughly 66 % of pensionable income (limited to 12G) including old age pension from the National Insurance. The scheme is secured. Employees’ individual share was 2 %. As of 01.12.15 employees earn entitlements in a defined-contribution pension scheme. Annual contributions for old age pension for each member constitute 7 % of the wage interval between 0 G and 7.1 G, and 25.1 % of the wage interval between 7.1 G and 12 G. The scheme includes disability pension and child’s pension. Disabled personnel are exempted from contributing. Employees’

individual share is 2 %. The pension scheme comprises 8 persons per 31.12.16, of whom 7 are active and 1 received a pension in 2016. The company also has an early retirement schme for managerial personnel, paying 2/3 of salary from the age of 63 to 67. This scheme is unfunded and is paid direct from the company’s operations. All pension schemes are treated according to the Norwegian standard for pension costs. When unamortized actuarial variance exceeds 10 percent of the highest amount of estimated pension commitment inckluding employer’s national insurance contribution and pension funds, the excess amount is amortized over the average remaining earning period.


GROUP

ESTIMATED PENSION COMMITMENTS SECURED SCHEMES 2016 2015

Estimated pension commitments (DBO) 1,240 1,219

Pension funds (market value) -1,081 -1,009

Employer’s national insurance contribution 17 30

Unrecognized estimated variances from planned costs / (curtailment) 0 0

Unrecognized actuarial variation -38 0

Net pension commitment (Net pension funds) 138 240

ESTIMATED PENSION COMMITMENT UNSECURED SCHEMES 2016 2015

Estimated pension commitments (DBO) 513 1,540

Pension funds (market value) 0 0

Employer’s national insurance contribution 73 217

Unrecognized estimated variances from planned costs / (curtailment) 0 0

Unrecognized actuarial variation -35 -674

Net pension commitment 551 1,084

FINANCIAL ASSUMPTIONS: 31/12/2016 31/12/2015

Discount rate+ 2.60 % 2.70 %

Annual wage growth 2.50 % 2.50 %

Annual regulation of pensions being drawn 0.00 % 0.00 %

Annual G increase 2.25 % 2.25 %

Anticipated return on pension funds 360 % 3.30 %

OCCUPATIONAL PENSION SCHEMES IN DSD GROUP

DSD Group has established a company pension scheme for all personnel through a life insurance company. The company pension scheme fulfills requirements of the Act on mandatory occupational pension.

PENSION SCHEME FOR MARITIME PERSONELL IN NORLED AS

Maritime personnel have a separate, contractual additional pension scheme. Old age pension from 60 - 67 years constitutes 60% av pensionable income at full accrucal (360 months of service), incl. estimated pension from the pension insurance for seamen. This scheme is secured. The scheme comprises 648 persons, of whom 58 are pensioners . For maritime personnel a defined-contribution scheme has been

established in addition to the occupational pension under the Act on mandatory occupational pension. The scheme grants old age pension from the age of 67 based on annual contributions that for each member constitute 2% of wages in the interval 1G to 12G. Pensionable income consists of fixed salary, bonus and other variable and temporary benefits. The scheme comprises 648 persons. Exemption from premium/contribution is granted for disabled personnel for both the contractual additional pension scheme and the defined-contribution pension scheme.

cont. note 11 - pensions


OCCUPATIONAL PENSION SCHEMES IN TIDE GROUP

Tide group has established a defined-contribution company pension scheme in a life assurance company for all employees. The company pension fulfills requirements under the Act on mandatory occupational pension.

DEFINED-BENEFIT PENSION ASSURANCE TO EMPLOYEEES TAKEN OVER IN CONNECTION WITH TRANSFER OF UNDERTAKING (NETTBUSS TRONDHEIM AS)

The transfer of undertaking entails a continuation of two closed benefit schemes for employees who were transferred from NettBuss Trondheim AS. A compensation arrangement was established which ensures Tide Buss AS coverage of costs beyond a premium if employees were members of a collective contribution scheme with terms and risk coverage as agreed in the “Bussbransjeavtalen.” In terms of accounts the pension commitment is recorded as a defined benefit scheme, but the financing through compensation is recorded as a receivable against the client, AtB AS. In the Income Statement the scheme appears with a cost equal to the mentioned contribution plan. The scheme comprises 20 persons, of whom 12 are active.

DEFINED-CONTRIBUTION PENSION SCHEME TIDE

Employees in Tide’s Norwegian companies earn rights in a defined-contribution pension scheme. Annual contributions for old age pension constitute for each member 5% of salary in the interval 1G to 6G, and 8% in the interval 6G to 12G. The scheme includes disability pension (62% of pensionable income) and child’s pension. Exemption from contribution is granted for disabled persons. Employees pay an individual share of 2 %.

CONTRACTUAL PENSION

Tide group includes companies that have adopted the scheme of contractual early retirement (AFP). A new Act on AFP was introduced 19 February 2010 and became immediately effective. The previous AFP applying to the private sector was closed and replaced by the new scheme end 2010. The new AFP scheme is a defined-benefit multi-enterprise scheme, where enterprises recognize their proportional share of scheme commitments, funds and cost. Sufficient information is not available for measuring the scheme, nor a consistent and reliable basis for making allocations between the

enterprises taking part in the scheme. The scheme is therefore recognized as a contribution scheme. Whether there is a basis for capitalizing the commitments of this scheme, depends on whether there is a consistent and reliable allocation key and whether the necessary data basis can be provided.

OPERATING PENSIONS TIDE GROUP

Tide has commitments connected to salaries exceeding 12G, which apply to parts of group management. Additonally some commitments on early age pension relate to previous financed and paid through the operations. This scheme comprises 8 persons for the parent company and 17 persons for the Tide group. Average age of these perrsons in the parent company is 72.5 yeras. The scheme is financed direct through operations.

CEO’S PENSION

The CEO does not have a separate pension scheme.

EMPLOYER’S NATIONAL INSURANCE CONTRIBUTION

Pension costs and pension commitments include employer’s national insurance contribution. In the accounts, figures for TIDE are included in the balance-sheet figures per 31.12.16, but not in the income statement for 2016.


2016 2015

Present value av commitments 144,906 94,318

Fair value of pension funds -109,632 -74,572

Estimate deviation -19,255 -1,537

Estimated adjustment for maritime personnel 674 10,500

Total, net defined-benefit pension commitment 31.12 16,694 28,709

Changes in present value of defined-benefit pension commitments

PBO per 01.01 121,440 112,430

Pensions accruals for the year 5,130 6,315

Employer’s national insurance contribution 2,904 1,157

Interest cost on pension commitments 2,827 2,278

Estimate deviation 16,128 -7,006

Pension payments including employer’s contribution -5,356 -4,968

Settlement -144 -15,887

PBO 31.12 142,930 94,318

Estimated adjustment for maritime personnel 0 0

PBO 31.12 142,930 94,318

Changes in pension funds

Pension funds (market value) per 01.01 87,913 64,101

Return on pension funds deducted adm. costs 2,783 1,993

Estimate deviation -2,885 -5,662

Paid premium / for premium fund 26,153 29,069

Pension payments -2,856 -2,345

Settlement -144 -12,585

Funds at transfer of undertaking 0 0

Pension funds (market value) pr 31.12 110,966 74,573

Cost included in the result

Pension accruals for the year 5,601 6,811

Interest cost on pension commitments 2,091 2,234

Pension cost (gross) 7,692 9,045

Anticipated return on pension funds deducted adm. costs -1,986 -1,993

Pension cost (net) before payment of employer’s contribution 5,706 7,052

Recognized funds/commitment/curtailment -1,264 -1,264

Recognized estimate deviaton / curtailment 5,283 -7,096

Recognized discrepancies 594 901

Employer’s contribution 2,965 951

Recognized pension cost after employer’s contribution 13,284 544

forts. note 11 Pensjoner


Cost defined-contribution pension schemes

Defined-contribution pension scheme 21,034 18,061

Pension contribution scheme maritime personnel 18,927 20,482

Recognized defined-contribution pension schemes 39,962 38,544

The following economic assumptions have been applied as basis: 2016 2015

Discount rate 2.60 % 2.50 %

Anticipated return on pension funds 3.60 % 3.30 %

Annual wage growth 2.50 % 2.50 %

Annual regulation of National Insurance basic pension 2.25 % 2.25 %

Annual regulation of pensions 0.00 % 0.00 %

Employer’s national insurance contribution 14.10 % 14.10 %

forts. note 11 Pensjoner



NOTE 12 - TANGIBLE FIXED ASSETS - PARENT(Amounts in NOK 1,000)

EQUIPMENT, ETC.

31.12.2016TOTAL

31.12.2015TOTAL

Acquisition cost 01.01 2,063 2,063 6,583

Additions 2,020 2,020 1,522

Disposal 0 0 -6,042

Acquisition cost 31.12 4,083 4,083 2,063

Accumulated depreciation 01.01 762 762 2,098

Depreciation for the year 817 817 570

Depreciation on fixed assets solds 0 0 -1,906

Accumulated depreciation 31.12 1,579 1,579 762

Carrying amount pr. 31.12 2,505 2,505 1,302

TANGIBLE FIXED ASSETS - GROUP(Amounts in NOK 1,000) FERRY AND LINER

TRADE SHIPSSHIPS IN INTERNA-

TIONAL TRAFFICPERIODIC

MAINTENANCE31.12.2016

TOTAL SHIPS31.12.2015

TOTAL SHIPS

Acquisition cost 01.01 4,893,705 1,762,375 51,740 6,707,820 6,742,873

Additions 34,749 932 7,553 43,234 422,978

Disposal -113,231 -140,265 -17,285 -270,781 -458,031

Acquisition cost 31.12 4,815,223 1,623,042 42,008 6,480,273 6,707,820

Accumulated depreciation 01.01 1,805,486 447,588 26,617 2,279,691 2,280,249

Depreciation for the year 210,003 62,015 8,472 280,488 279,966

Write-downs for the year 0 40,000 0 40,000 0

Translation difference -93 0 0 -93 0

Depreciation on fixed assets sold -103,841 -30,162 -9,465 -143,468 -280,522

Accumulated depreciation 31.12 1,911,555 519,441 25,623 2,456,619 2,279,693

Carrying amount per 31.12 2,903,668 1,103,601 16,385 4,023,654 4,428,127

Economic life 20-30 years 20-25 years 5 years

Carrying amount of ferry and local ships in regular service includes newbuilding contracts with a book value of NOK 38.2 million. Periodic maintenance relates to capitalized costs relating to special survey and intermediate survey of ships in international trade.


(Amounts in NOK 1,000) GOODWILLOTHER INTANGIBLE

ASSETSSITES AND BUILDINGS

BUSES, MACHINES,

EQUIPMENT, ETC.

31.12.2016TOTAL

31.12.2015TOTAL

Acquisition cost 01.01 0 49,297 1,596 114,005 164,898 160,315

Additions fixed assets 0 0 0 32,043 32,043 14,509

Translation difference 0 0 0 -3 103 -3 103 0

Additions /disposal re. subsidiaries 259,218 0 110,968 2,708,283 3,078,469 0

Disposal0 0 0 0 0 -9,926

Acquisition cost 31.12 259,218 49,297 112,564 2,851,228 3,272,307 164,898

Accumulated depreciation 01.01 0 45,297 0 94,255 139,552 135,775

Depreciation for the year0 0 0 14,215 14,215 8,504

Write-downs for the year0 0 0 19,982 19,982 0

Translation difference0 0 0 204 204 1,062

Depreciation of subsidiary additions/disposal0 0 48,185 1,719,639 1,767,824 0

Depreciation on fixed assets sold 0 0 0 0 0 -5,789

45,297

Economic life 5 20-33 years 3-10 years

INVESTMENT COMMITMENTS PER 31.12.2016

Parent company 0 MNOK

Group 0 MNOK

OPERATIONAL LEASE AGREEMENTS (GROUP)

Costs for the year Term of agreement Expiry date 2016 2015

Terminals 5/10 years 2016- 2021 4,380 4,541

Other lease agreements 8 years 2016 - 2019 144,226 140,530

Costs for the year 283,805 145,071

cont. note 12 - Tangible fixed assets - Group

FINANCIAL LEASE AGREEMENTS (GROUP)INTERNATIONAL SHIPPING

An estimation of the value of ships operating in international shipping has been made. Broker rates based on ships including the value of cashflow from contracts were employed. For ships without contracts

analyses were conducted compared to broker rates and values at future use of group vessels.

Accumulated depreciation 31.12 0 48,185 1,848,295 1,941,777 139,552

Carrying amount per 31.12259,218 4,000 64,379 1,002,933 1,330,530 25,346

Office premises/bus facilities 10 years/ongoing 2015-2025 72,588 0

Buses Ongoing 62,611 0


cont. note 12 - Tangible fixed assets - Parent

TRANSPORT, NORLED

A major part of earnings from passenger transport is related to long-term contracts (tenders) with significant investments in fixed assets. Per 31.12.16 an estimate of the value of fixed assets incorporated in contracts was made. The estimation is based on future cashflows,

the value of fixed assets, and a required rate of return (WACC) of 6 %. Based on the estimation, no further write-downs were made in 2016; unchanged compared NOK 18 million in 2015.

Kiosk inventories consist of kiosk merchandise for resale, while other inventories are purchased finished goods.

NOTE 13 - INVENTORIES

NOTE 14 - TAX (Amounts in NOK 1,000)

PARENT01.01 - 31.12

2016 2015

GROUP01.01 - 31.12

2016 2015

Tax payable appears as follows:

Ordinary result before tax 46,729 -42,331

Permanent differences 34 1,325

Shared profit inn companies under the equity method of accounting (private limited companies) -90,692 21,298

Change in temporary differences 224 -4,477

Group contribution 61 609

Basis tax payable -43,643 -23,576

Tax 25% 0 0

Tax payable on result for the year 0 0

Tas for the year appears as follows:

Tax payable on result for the year 0 0 92 4,080

Change in deferred tax -9,043 -13,620 21,007 12,545

Change in deferred tax resulting from amended tax rate 1,248 2,037 -4,506 -6,896

Change in previous years 3,311 0 3,311 68

Tax on group contribution -15 -164 0 0

Tonnage tax 0 0 588 676

Total tax cost for the year -4,500 -11,747 20,492 10,473

Kiosk inventories 1,650 1,465

GROUPINVENTORIES 2016 2015

Bunkers 24,249 19,942

Lube oil 5,116 5,413

Deck, spare parts and equipment 16,010 0

Total 47,025 26,820


cont. note 14 - Tax

SPECIFICATION OF BASIS OF DEFERRED TAX:

Deferred tax advantages is recognized in parent company’s balance sheet as it is expected that this may be utilized by future group contribution.

Effects of permanent differences are mainly related to securities within the exemption method, and for the group also the effects of tonnage tax, where the result is tax-exempt.

CONNECTION BETWEEN TAX COST AND TAX ESTIMATED AT AVERAGE NOMINAL TAX RATE ON PRE-TAX RESULT:

Tax payable in balance-sheet appears as follows: 31.12.2016 31.12.2015 31.12.2016 31.12.2015

Tax payable on result for the year 0 0 92 4,080

Tonnage tax 0 0 588 676

Total short-term tax payable 0 0 680 4,756

Differences being equalized: MOR

31.12.2016 31.12.2015KONSERN31.12.2016 31.12.2015

Long-term 3,694 3,919 1,291,935 992,799

Short-term 0 0 0 -1,923

Total temporary differences 3,694 3,919 1,291,935 990,876

Loss carried forward -187,762 -179,413 -1,273,284 -977,529

Different acquisition cost in transactions between partnerships 59,294 73,649 59,294 73,649

Total -124,774 -101,845 77,945 86,996

Deferred tax/ deferred tax advantage (24%/25%) -29,946 -25,461 18,707 21,749

Recognized deferred tax/ deferred tax advantage -29,946 -25,461 104,122 84,347

Deferred tax relating to acquisition/sale of subsidiaries

Deferred tax 0 0 -7 977 -1 119

PARENTNOK %

GROUPNOK %

Tax estimated as average nominal tax rate on 11,682 25.0 % 17,955 25.0 %

Effects of equity method -20,564 -44.0 % 1,105 1.5 %

Effects of permanent differences 186 -0.4 % -23,220 -32.3 %

Change in recognized deferred tax advantage 0 0.0 % 23,571 32.8 %

Change in previous years 3,311 7.1 % 3,311 4.6 %

Change in deferred tax advantage rate 886 1.9 % -2,230 -3.1 %

Tax cost according to Income Statement -4,500 -9.6 % 20,492 28.5 %


NOTE 15 - EQUITY AND SHAREHOLDER INFORMATION (Amounts in NOK 1,000)

Correction of equity mainly relates to translation differences in subsidiaries and corrections of previous years’ mistakes. Share capital per 31.12.16 consists of 4 281 613 shares at NOK 134 each. All shares are owned by Folke Hermansen AS, controlled by Yuhong

Jin Hermansen. Consolidated accounts are prepared by Folke Hermansen AS, which may be obtained by contacting the company.

Correction of equity mainly relates to translation differences in subsidiaries and corrections of previous years’ mistakes.

PARENT EQUITY

GROUP EQUITY

CHANGE IN EQUITY FOR THE YEAR: SHARE CAPITAL PREMIUMREVALUATION

FUND OTHER EQ TOTAL

Equity 31.12.15 573,736 305,406 0 579,480 1,458,621

Correction of equity 377 377

Dividend / group contribution 0 0

Annual result 0 51,229 51,229

Equity 31.12.2016 573,736 305,406 0 631,085 1,510,227

CHANGE IN EQUITY FOR THE YEAR: SHARE CAPITAL PREMIUM GROUP FUNDSMINORITY

INTERESTS TOTAL

Equity 31.12.15 573,736 305,406 594,096 1,272 1,474,510

Correction of equity -7 391 384

Equity adjustment in acquisitions, see note 2 133,376 67,310 200,686

Annual result 50,597 730 51,327

Equity 31.12.2016 573,736 305,406 778,062 69,703 1,726,907

OPERATING INCOME 2016 2015

Shipping 295,100 413,407

Conveyance of goods 1,059,566 1,035,277

Passenger transport 2,107,688 2,069,148

Other/elimination 14,731 24,625

Group 3,477,085 3,542,457

NOTE 16 - SEGMENT INFORMATION(Amounts in NOK 1,000)

Earnings derive from international shipping and it is not possible to ascribe these earnings to a geographical area. Other earnings are largely generated in Norway, while around 25 % of earnings within conveyance of goods may be acribed to Europe at large (NOK 265 million). Other includes sales proceeds at NOK 12.140 million. Corresponding figures for 2015 were NOK 40.407 million.


Folke Hermansen AS owns 100% of share in Det Stavangerske Dampskibsselskab AS. Other related parties appear in note 2 - associated companies and subsidiaries.

Per 31.12.16 the company had a NOK 178 million loan from the parent company.

Group passenger transport is operated by Norled AS, where operations are mainly financed through the following assignments:

Parent company’s and the group’s financial market risk is mainly related to changes in currency rates, interest rates and stock exchange developments. CURRENCY RISK

USD is main currency within international shipping. Group finances the main part of shipping activity in USD, thereby guarding against significant economic changes resulting from currency rate fluctuations.

INTEREST RISK

Group loans mainly have a floating interest rate. Group interest costs therefore vary according to market rate developments. Group manages interest risk by means of interest derivatives. Interest derivatives qualifying for hedge accounting are kept outside the balance-sheet.

2016 2015

Contractual income in Norway 1,473,642 1,402,347

Contractual income in Denmark 470,185 549,335

Total contractual income 1,943,827 1,951,682

NOTE 18 - GOVERNMENT GRANTS FOR PARENT AND GROUP

NOTE 19 - FINANCIAL MARKET RISK

NOTE 20 - OTHER OPERATING COSTS

NOTE 17 - CLOSELY RELATED PARTIES FOR PARENT AND GROUP

Other operating costs Parent

2016 2015Group

2016 2015

Scheduled transport costs 0 0 861,662 820,262

fuel 0 0 346,574 405,365

Repair and maintenance 0 0 258,708 227,154

Other operating costs 16,339 10,486 331,098 420,509

SUM 16,339 10,486 1,798,042 1,873,290


2016 2015

Contractual income in Norway 1,551,293 1,481,263

Total contractual income 1,551,293 1,481,263

Total 1,943,827 1,951,682


NOTE 21 - SIGNIFICANT ESTIMATES AND UNCERTAINTIES RELATING TO TIDE

The preparation of the annual accounts for Tide has applied financial assumptions considered as realistic, and accounting estimates based on our best judgment. Estimates were made by management taking into consideration the uncertainty relating to underlying cirumstances. This applies in particular to the estimation of write-downs and depreciations. Situations may arise in market conditions that may entail a change of estimates, thereby affecting Tide’s assets, debt, equity, and result. Changes in accounting estimates are recorded in the period in which the changes occur. If the change is going to have an impact on future periods, the effect is distributed across present and future periods. Tide has considered there is uncertainty relating to the following items:

TANGIBLE FIXED ASSETS AND FAIR VALUE

Operating income in Tide is largely linked to long-term contracts (tenders), which involve substantial investments in tangible fixed assets. Per 31.12.2016 an evaluation of the value of the company’s tangible fixed assets was made where there might exist an indication of impairment. To re-examine capitalized values of tangible fixed assets an estimation of utility value was made. Utility value was estimated for each cashflow generating unit (KGE). Based on the company’s internal reporting areas and the identification of independent ingoing cashflows, each tender in Norway represents a cashflow generating unit. A calculation of utility value was made for tenders where there may be a risk of permanent impairment of the value of tangible fixed assets. In general there will always be some uncertainty relating to future cashflows in contracts won after competitive tendering owing to changes in scheduled public transport and uncertainty relating to future cost trends. The following significant assumptions have been applied as basis in the preparation of future cashflows in the write-down assessments: -Internal efficiency projects will achieve the budgeted effect -Discount rate before tax is 6.5 % Values recognized in the balance sheet are sensitive to changes in the mentioned assumptions both individually and collectively. Tide is trying to control uncertainty relating to scheduled public transport through a dialogue with the client on price changes. The majority of contracs

with government contains regulation clauses to settle parts of the variations, such as diesel prices. Utility values are calculated as present value of net future cashflows for each tender. In future cashflows, the agreed contractual income and budgeted operating costs during the contractual period have been used as basis. In addition, annual action plans for cost savings and enhanced efficiency over the duration of contracts are recognized. Further an increase of income relating to anticipated change orders has been recognized. Whether these actions plans will be attained depends on the implementation of specific actions that lie within the company’s control, as well as actions requiring the acceptance of contracting parties. The extent of budget compliance and attainment of effects in action plans are of major importance to the calculation of utility values. In models where cashflows are projected for several years in advance, there is uncertainty as to whether these cashflows wil be attained.

The company’s best judgment supported by risk assessment and sensitivities have been applied as basis. When contracts expire a re-purchase value of used buses based on experience and suppliers’ residual value is applied. In the contracts for Bergen Sør and Bergen Nord, the client has exercised options for a further 2-year operation. In Haugesund the client has the opportunity to exercise options. Tide considers it is overhwlemingly likely that these options will be exercised and has thus applied this assumption as basis in future cashflows. Future cashflows have applied an annual growth rate of 2.5 % as basis. The discount rate has been set at 6.0% before tax. Historically, write-downs of capital equipment totalling NOK 38.5 million have been made for contracts giving a negative present value. To illlustrate the uncertainty of such calculations, sensitivity analyses of selected calculation factors have been conducted. The overview below indicates the effects of the various factors when calculated individualy in the form of changes to the total present value of tenders that have been considered to constitute a risk of permanent impairment of fixed assets:


2016 2015

TALL I MNOK PRESENT

VALUE IB NEDSKR ACCUMULATEDPRESENT

VALUE ACCUMULATED

Interest + 1 % 3.5 38.5 38.5 -5.9 38.5

Interest - 1 % -3.4 38.5 40.6 6.2 38.5

EBITDA + 1 % of turnover 19.5 38.5 38.5 24.4 38.5

EBITDA - 1 % of turnover -19.5 38.5 53.4 -24.4 41.3

EBITDA + 5 MNOK pa per contract 44.1 38.5 38.5 58.1 38.5

EBITDA - 5 MNOK pa per contract -44.1 38.5 78.0 -58.1 66.7

NOTE 22 - COMPANY UNDER DISPOSALCompany subsidiary, Nor Lines AS, is under disposal. The company is consolidated into the DSD group and in 2016 posted operating income of NOK 1,060 million and operating costs of NOK 1,132 million. The company posted financial income of NOK 7 million and financial costs of NOK 29 million. The company posted a loss of NOK 94 million for 2016. It is the company’s

operations that is being disposed. Nor Lines’ subsidiary - Skipafelagid Nor Lines - is not part of the transaction and will remain as company within the DSD group. No significant gains or losses for DSD are expected owing to the disposal, beyond the allocations made in the 2016 accounts.

-24,674 -16,860 EBITDA 543,266 561,450

817 570 Depreciations on fixed assets 12 294,703 288,470

0 0 Write-downs 12 59,982 0

-25,491 -17,430 Operating profit 188,581 272,980

84,185 -21,665 Result of investments in subsidiaries 2,22 0 0

PARENT01.01-31.12

2016 2015 NOTE

Group01.01-31.12

2016 2015

7,943 4,864 Operating income 16,18,22 3,477,085 3,542,457

16,278 11,238 Wage cost 3,11 1,135,777 1,107,717

16,339 10,486 Other operating costs 3,12,20,22 1,798,042 1,873,290

-23,217 -7,521Result of investments in associated wcompanies 2,22 -22,731 -7,359

60,968 -29,186 Result of investments -22,731 -7,359

15,781 17,564 Financial income 9 6,020 51,089

-4,529 -13,279 Financial costs 9 -172,900 -188,008

0 0 Unrealized gain/loss on exchange 9 72,849 -152,288

11,252 4,285 Net financial items -94,031 -289,207

46,729 -42,331 Ordinary result before taxes 71,819 -23,586

4,500 11,747 Tax on ordinary result 14 -20,492 -10,473

51,229 -30,584 Annual result before minority interests 51,327 -34,059

0 0 Minority interests 15 730 -3,286

51,229 -30,584 Annual result after minority interests 50,597 -30,773

Allocation of annual result

0 50,000 Allocated group contribution

0 0 Revaluation reserve

51,229 -80,584 Other equity

51,229 -30,584 Total allocations

INCOME STATEMENT(Amounts in NOK 1,000)







DET STAVANGERSKE DAMPSKIBSSELSKAB ASVisiting address : Børehaugen 14006 Stavanger

PO box 404001 StavangerPhone: +47 51 84 56 11Telefax: +47 51 84 56 03www.dsd.noe-mail: [email protected]

DSD SHIPPING ASVisiting address: Børehaugen 14006 Stavanger

PO box 8484004 StavangerPhone: +47 51 84 56 00Telefax: +47 51 84 56 01www.dsd-shipping.noe-mail: [email protected]

NORLED ASVisiting address: Børehaugen 14006 Stavanger

PO box 839 Sentrum4004 StavangerPhone: +47 51 86 87 00Telefax: +47 51 89 54 25www.norled.noe-mail: [email protected]

NOR LINES ASVisiting address: Børehaugen 14006 Stavanger

PO box 655 Sentrum4003 StavangerPhone: +47 51 84 56 50Telefax: +47 51 84 56 51www.norlines.noe-mail: [email protected]

TIDE ASMøllendalsveien 1APO box 63005893 BergenPhone: +47 05505Telefax: +47 55 23 87 01www.tide.noe-mail: [email protected]

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ANNUAL REPORT 2016 - daks2k3a4ib2z.cloudfront.net · 6 67891802034751 79601 1171 09019999903309575899 NATURE AND LOCATION OF THE ACTIVITIES The DSD Group, of which Stavangerske Dampskibsselskab